Presentation on theme: "Retirement Did you know…? Look for other informative fact sheets on topics affecting your career decisions: REDUX? HIGH-3? Legislative changes over recent."— Presentation transcript:
Retirement Did you know…? Look for other informative fact sheets on topics affecting your career decisions: REDUX? HIGH-3? Legislative changes over recent years have resulted in some confusion for service men and women with regard to retirement. Understanding your options is critical in making sound decisions that effect you beyond your Air Force career. Determining what options apply to you and which of those options best suits you, is a decision only you can make. ~ Reenlistments ~ ~ Retraining ~ ~ Commissioning ~ ~ Assignments ~ Career Assistance Advisor: MSgt Shelli Fisher Bldg 916 Rm 5 434-7004 CAA Website: https://columbusweb/orgs/Career%20Assistance %20Advisor/index.html MSgt Shelli Fisher Career Assistance Advisor
Know Your Plan! There are three retirement plans under which a service member falls. Which one applies to you? PLAN-A (Final Pay) WHO: Entered active service prior to 8 Sep 80 PAY: 50% at 20 years ~ Max of 75% at 30 Years PLAN-B (High-3) WHO: Entered active service between 8Sep80 - 31Jul86 PAY: Based on multiplier times basic pay of high-36 month average PLAN-C (REDUX) WHO: Entered active service 1Aug86 or later PAY: Based on multiplier times basic pay of high-36 month average minus 1% for each year < 30 years Date is determined by members Date Initially Entered Military Service (DIEMS) REDUX REPEAL Options Due to great concern over the REDUX plan, legislative changes have been enacted to alleviate inequities. Members that fall under REDUX will be offered a choice of retirement plans at their 15th year of service. Option-1 Revert to Plan-B (High-3) Option-2 Elect the REDUX plan plus a $30K (taxable) Career Retention Bonus (CRB) to be paid at the 15 year point with a service commitment of 20 years. More on High-3 * 2.5% added to multiplier each year (20yrs=50% 30yrs+75%) * Multiplier applied against average basic pay for highest 36 months of individuals career * Annual COLA increases are based on the Consumer Price Index (CPI). Under High-3 COLA is equal to CPI. Yrs of service REDUX High-3 202224262830 40%47%54%61%68%75% 50%55%60%65%70%75% Under REDUX + CRB, retirement pay is computed at 40% of basic pay, with a 3.5% increase each additional year after 20. COLA is calculated at 1% below CPI. Each year prior to 20 is worth 2%; each year after is worth 3.5% Re-Computation at Age 62 Two adjustments are made to the retirees pay at age 62. First, the multiplier adjusts to the same as High-3 (i.e. 50% @ 20). Second, a one-time adjustment to COLA is applied, which makes REDUX and High-3 retirement salaries equal. However, COLA in following years will again be calculated at CPI minus 1%. $$$$$ $30,000 BONUS $$$$$ Bonuses will be paid shortly after the member elects this option and agrees to a 20-year commitment. If member fails to complete this obligation repayment will be prorated. http://pay2000.dtic.mil/ Need more info? Check out this website! W hen should you apply for retirement? No earlier than 12 months in advance. No later than 120 days from desired retirement date (plus terminal & permissive leave) POC: Sep/Ret x2599 POC: Career Enhancements x2586 POC: Financial counseling FSC x2701
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